Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, if he will hold discussions with the hon. Member for Newton Abbot on the Company Directors (Duties) Bill.

Answered by Justin Madders - Parliamentary Under Secretary of State (Department for Business and Trade)

I would be pleased to meet with the Honourable Member to discuss his Private Member’s Bill (the Company Directors (Duties) Bill) and the Government’s plans to publish a draft Audit Reform and Corporate Governance Bill.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, if he will hold discussions with the hon. Member for Newton Abbot on the Corporate Governance Bill.

Answered by Justin Madders - Parliamentary Under Secretary of State (Department for Business and Trade)

I would be pleased to meet with the Honourable Member to discuss his Private Member’s Bill (the Company Directors (Duties) Bill) and the Government’s plans to publish a draft Audit Reform and Corporate Governance Bill.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, whether his Department plans to consult (a) businesses, (b) trade unions, (c) investors and (d) civil society organisations on the principle of moving from shareholder primacy to stakeholder primacy.

Answered by Justin Madders - Parliamentary Under Secretary of State (Department for Business and Trade)

Section 172 of the Companies Act 2006 requires company directors to have regard in their decision-making to the interests of their employees and to the impact of the company's operations on the community and the environment. All large companies must report annually on how their directors have fulfilled this duty. Section 172 enshrines in statute the "enlightened shareholder value" principle, which recognises that the long-term success of a company depends in part on the ongoing consideration of wider stakeholder interests. This contrasts with the "shareholder maximisation" principle underpinning directors' duties in some other jurisdictions, in which directors owe their duty only to shareholders.

The Government welcomes suggestions on how to ensure companies consider wider stakeholder interests alongside the needs of stakeholders. I look forward to considering the clauses of the Company Directors (Duties) Bill when available.

I would be pleased to meet with the Honourable Member for Newton Abbot to discuss his Private Member's Bill.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, if his Department will amend section 172 of the Companies Act 2006 to require company directors to balance the duty to promote the success of the company with duties to (a) employees and (b) the environment.

Answered by Justin Madders - Parliamentary Under Secretary of State (Department for Business and Trade)

Section 172 of the Companies Act 2006 requires company directors to have regard in their decision-making to the interests of their employees and to the impact of the company's operations on the community and the environment. All large companies must report annually on how their directors have fulfilled this duty. Section 172 enshrines in statute the "enlightened shareholder value" principle, which recognises that the long-term success of a company depends in part on the ongoing consideration of wider stakeholder interests. This contrasts with the "shareholder maximisation" principle underpinning directors' duties in some other jurisdictions, in which directors owe their duty only to shareholders.

The Government welcomes suggestions on how to ensure companies consider wider stakeholder interests alongside the needs of stakeholders. I look forward to considering the clauses of the Company Directors (Duties) Bill when available.

I would be pleased to meet with the Honourable Member for Newton Abbot to discuss his Private Member's Bill.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, if he will meet with (a) the hon. Member for Newton Abbot and (b) members of the business community to discuss expanding the duties of company directors.

Answered by Justin Madders - Parliamentary Under Secretary of State (Department for Business and Trade)

Section 172 of the Companies Act 2006 requires company directors to have regard in their decision-making to the interests of their employees and to the impact of the company's operations on the community and the environment. All large companies must report annually on how their directors have fulfilled this duty. Section 172 enshrines in statute the "enlightened shareholder value" principle, which recognises that the long-term success of a company depends in part on the ongoing consideration of wider stakeholder interests. This contrasts with the "shareholder maximisation" principle underpinning directors' duties in some other jurisdictions, in which directors owe their duty only to shareholders.

The Government welcomes suggestions on how to ensure companies consider wider stakeholder interests alongside the needs of stakeholders. I look forward to considering the clauses of the Company Directors (Duties) Bill when available.

I would be pleased to meet with the Honourable Member for Newton Abbot to discuss his Private Member's Bill.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, whether he plans to support reform in corporate governance from shareholder primacy towards stakeholder primacy.

Answered by Justin Madders - Parliamentary Under Secretary of State (Department for Business and Trade)

Section 172 of the Companies Act 2006 requires company directors to have regard in their decision-making to the interests of their employees and to the impact of the company's operations on the community and the environment. All large companies must report annually on how their directors have fulfilled this duty. Section 172 enshrines in statute the "enlightened shareholder value" principle, which recognises that the long-term success of a company depends in part on the ongoing consideration of wider stakeholder interests. This contrasts with the "shareholder maximisation" principle underpinning directors' duties in some other jurisdictions, in which directors owe their duty only to shareholders.

The Government welcomes suggestions on how to ensure companies consider wider stakeholder interests alongside the needs of stakeholders. I look forward to considering the clauses of the Company Directors (Duties) Bill when available.

I would be pleased to meet with the Honourable Member for Newton Abbot to discuss his Private Member's Bill.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, if he will support the (a) passage and (b) principle of the Company Directors (Duties) Bill.

Answered by Justin Madders - Parliamentary Under Secretary of State (Department for Business and Trade)

Section 172 of the Companies Act 2006 requires company directors to have regard in their decision-making to the interests of their employees and to the impact of the company's operations on the community and the environment. All large companies must report annually on how their directors have fulfilled this duty. Section 172 enshrines in statute the "enlightened shareholder value" principle, which recognises that the long-term success of a company depends in part on the ongoing consideration of wider stakeholder interests. This contrasts with the "shareholder maximisation" principle underpinning directors' duties in some other jurisdictions, in which directors owe their duty only to shareholders.

The Government welcomes suggestions on how to ensure companies consider wider stakeholder interests alongside the needs of stakeholders. I look forward to considering the clauses of the Company Directors (Duties) Bill when available.

I would be pleased to meet with the Honourable Member for Newton Abbot to discuss his Private Member's Bill.

Better Business Day campaign and the Company Directors (Duties) Bill